Gold Rate Today: Investors book profit in yellow metal after fresh highs. Should you follow?

Street’s hopes for a June rate cut have taken ground amid softer US economic data, and investors now await Fed Chair Jerome Powell’s testimony before Congress. The price of gold in the international market is now at a three-month high.

Taking cues from the international prices, MCX April gold futures were trading at Rs 64359 per 10 grams, down by Rs 103 or 0.16% while the May Silver contracts were trading at Rs 73,413 per kg, lower by Rs 54 or 0.07%.

On the Comex, gold futures were trading flat at $2,089.10 per troy ounce, down by $6.60 or 0.21% while Silver futures were hovering at $23.260 per troy ounce, lower by $0.104 or 0.450%.

On Monday, MCX Gold April contract closed at Rs 64,455 while the May Silver futures settled at Rs 73,435.

"Gold prices soared to record-breaking highs, surpassing the $2,100 mark per troy ounce on a closing basis for the first time ever. Similarly, silver prices reached a two-month peak, approaching the $24 per troy ounce level. The momentum in gold and silver was partly fueled by disappointing US economic data, which bolstered the expectations for rate cuts by the US in June," Rahul Kalantri, Vice President, Commodities at Mehta Equities said. A weaker dollar, which dipped below the 104 threshold, further underpinned the appeal of precious metals, he said.

Kalantri sees support in Comex gold at $2,098-$2,082 while resistance at $2,124-$2,140. As for silver, support is seen at $23.42-$23.20 while resistance is at $23.82-$23.98.

The chances of the Fed lowering rates in June have gone up and lower interest rates usually benefit the non-yielding gold, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said

Gold futures on the MCX have gained 3.03% or Rs 1,895 per 10 grams month-to-date, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. They were up by 1.99% or Rs 1,259 on the year-to-date basis. Meanwhile, silver futures have gained nearly Rs 2,188 or 3.07% in value terms in March while declining by 1.29% or Rs 963 on the YTD basis, the commodity and currency analyst said.

The price of gold in major physical markets like Delhi, Ahmedabad and other cities is Rs 66,000 per 10 grams while that of 1 kg of Silver is Rs 75,500, Gupta said.

Intraday Trading Strategy by Anuj Gupta

– Buy MCX April gold futures at Rs 64050 with a stop loss of Rs 63,900 and a price target of Rs 64,480/64,550.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)